Adversitement
Swan Energy Subsidiary Repays ₹2,206 Crore Loan, Achieves Significant Debt Reduction
Published On : 2024-03-04T15:28:36+0530 [ IST ] |
Author : Mayur_Tembhare
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Maharashtra / Mumbai :
energy" target="_blank">Swan Energy Limited has announced a significant milestone in its debt reduction strategy, with its subsidiary, Swan LNG Private Limited (SLPL), fully repaying a loan of approximately ₹2,206 crore along with accrued interest to a consortium of banks. This prepayment is anticipated to generate savings of around ₹250 crore in interest payments for SLPL.
The repayment of the loan marks a substantial reduction in SEL's debt, which now stands at ₹1,675 crore. This achievement signifies a notable decrease from the external debt position reported in September 2023, which was approximately ₹4,128 crore. By December 2023, the debt had further decreased to about ₹3,817 crore. To facilitate the loan prepayment, SEL extended financial assistance of ₹2,210 crore to SLPL.
In addition to the loan repayment, energy" target="_blank">Swan Energy recently concluded a Qualified Institutions Placement (QIP), raising ₹3,000 crore. The QIP attracted interest from various investors" target="_blank">institutional investors, including Quant Mutual Fund, SBI Life, LIC, Tata Mutual Fund, and several domestic and foreign institutions and family offices.
The funds raised through the QIP will primarily be allocated towards the modernisation of the recently acquired erstwhile Reliance Naval and Engineering Limited (RNEL) shipyard at Pipavav. Additionally, a portion of the funds will be earmarked for project expansion and debt reduction initiatives, further strengthening energy" target="_blank">Swan Energy's financial position and operational capabilities.
Despite these positive developments, energy" target="_blank">Swan Energy's shares witnessed a slight decline, down by 1.29 per cent to ₹721.40 at 10:50 am on the BSE. However, the company remains optimistic about its future prospects, leveraging the successful loan repayment and QIP proceeds to drive growth, innovation, and sustainable value creation across its business operations.
Source : Business Line
Tags : Financial Assistance , RNEL shipyard , institutional investors , Swan Energy , debt reduction , loan repayment , Swan LNG , QIP ,
Summary : energy" target="_blank">Swan Energy Limited's subsidiary, Swan LNG Private Limited (SLPL), has fully repaid a loan of approximately ₹2,206 crore to a consortium of banks, resulting in significant interest savings. This prepayment contributes to energy" target="_blank">Swan Energy's overall debt reduction strategy, with plans for utilising funds from a recently concluded Qualified Institutions Placement (QIP) to further reduce debt and modernise its shipyard facility. Despite the positive news, energy" target="_blank">Swan Energy's shares witnessed a slight decline on the stock exchange.
Adversitement